Commission based sales setup
My company sells Films and TV shows for producers on a commission basis. When we started using Wave we kept all these commission based calculations separate on an excel sheet. We also just recorded all invoices we sent and gotten paid in respective income accounts. When tax season came we hit a wall and had to do our numbers again by hand.
I'm trying to figure out how correctly record this in Wave as our invoicing and reporting is obviously not correct within Wave.
I have come up with the following setup.
Under Liabilities, I've setup an account for each film under Vendors. When the invoice payment comes I create a Journal and move the payment to the Liability account for that film.
When it's time to pay out, we send out a check or bank transfer. And when it clears, we categorize it to the Films liability account.
Then I add an income deposit for the commission amount from the same liability account to a Sales Commission income account. Zeroing the Liability account.
Am I correct in doing this this way?